Nigeria Requires 7.5 Billion Dollars for Transmission Upgrade

transmission towers project ELP

The Transmission Company of Nigeria (TCN) would require about $7.5 billion to improve on its ageing transmission infrastructure across the country. Managing Director, Niger Delta Power Holding Company Limited (NDPHC), Mr. James Abiodun Olutu, stated this at the PwC Annual Power and Utilities Roundtable with the theme, ‘‘The Challenges with Transforming the Nigerian Power Landscape’’ held in Lagos yesterday.
Olotu in his presentation entitled, ‘‘Improving Power Delivery Across the Generation: Transmission-Distribution Value Chain,” lamented that obsolete and weak transmission lines was militating against the delivery of generated power, thus worsening the country’s power situation.
He explained that power is hinged on a tripod – generation, transmission and distribution – insisting that once one arm is defective, it will ultimately affects the other areas.
Olotu who was represented by the Executive Director, Generation, NDPHC, Mr. Sanusi Garba, said the $7.5 billion investment in transmission upgrade is expected to be deployed over a five-year period at $1.5 billion annually.
He lamented that lack of fund to execute the $1.5 billion annual investment has made the dream of transmission infrastructure upgrade impossible. He, however, said hope is now in the horizon as the National Assembly has given TCN the nod to use part of the expected $5.7 billion proceeds from the sale of governments 80 per cent equity in NIPP to fund transmission upgrade.
Meanwhile, PwC yesterday launched its Africa Power Survey (Nigeria Focus) with a verdict that population growth will have significant impact on the Nigerian power sector.
The report also indicated that 69 per cent of the Nigerian participants identified the emergence of megacities as the next most impacting megatrend after population growth of high or very high impact.
‘‘This reflects the huge pressure of growing population and urbanization on Africa’s most populous country and the current gap in its power infrastructure. Results are quite the same globally or in Africa,with approximately 52 percent of respondents regarding the impact of megacities as significant, the survey disclosed.
The survey revealed that Nigeria paints a slightly different picture in terms of the challenges experienced in the power industry compared to the rest of Africa.
For Nigeria, the survey maintained that cost reflective tariffs top the list of challenges faced by the survey respondents, adding that the challenge is also envisaged to top the list of challenges in the next five years.
‘‘Market reforms are rated above ageing or badly maintained infrastructure looking at the industry today. This, however, is expected to significantly reduce in the next five years compared to ageing and badly maintained infrastructure, which is also expected to have had significant improvements,’’ the survey highlighted.


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